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IBI-Rating agency has upgraded the outlook of the credit ratings of SE «IA «Boryspil» to «positive»

22.01.2018
The National Authorized Rating Agency IBI-Rating informs on upgrading of the outlook of the long-term credit rating of SE «IA «Boryspil» from «stable» to «positive» and affirming of the credit rating of enterprise at uaAA+ grade, which is currently the highest value in the domestic corporate sector.

According to the Director of the corporate department of the IBI-Rating rating agency Igor Dykyi: «Upgrading of the outlook for the credit rating is due by the growing dynamics of key indicators of the financial and economic activity of the Airport and indicates that there is a possibility to upgrade the rating, on the condition that positive tendencies are maintained».

SE «IA «Boryspil» is of strategic importance and holds the status of the country’s main airport with the largest modern infrastructure, and its operating indicators show a significant growth trend. Thus, by results of 9 months of 2017 through the airport were carried out 66 thousand flights, which exceeded the result of the same period of the previous year by 19.8%. The increase was due by growth for international flights (+ 18%) and for domestic flights (+ 33.7%). By results of 9 months of 2017, the passenger flow of SE «IA «Boryspil» increased compared to the same period of the previous year by 24.8% and compiled 8.07 million passengers. The increase in the passenger flow was facilitated by the implementation of the «hub» development strategy, attracting new air carriers, improving the level of service. The improved efficiency of management and optimization of business processes creates potential for further development of the enterprise.

Positive dynamics of air transportation through the airport SE «IA «Boryspil» significantly improved its financial results by results of 9 months of 2017. Net revenue growth, as compared with the same period of the 2016, accounted for 20,2% – up to the amount of UAH 2 940, 5m. EBITDA increased by 16.1% – up to the amount of UAH 2 135,2m. Net income increased by 27.4% amounting to UAH 1 308m. Profit margin indicators are at a very high level: profit margin of EBITDA by results of 9 months of 2017 amounted to 63%, profit margin of net income grew to 44,5%.

Amount of debt (liabilities on loans and sub-loan agreement) of SE «IA «Boryspil» during January-September 2017 decreased by 24.2% and, as at 30.09.2017, amounted to UAH 1 855,9 m equivalent. The decrease was due to the timely repayment of a part of the loan obligations, as well as the repayment of L series bonds. The Airport 's creditors are state-owned banks, as well as the Ministry of Finance. The airport charges being linked to foreign currency significantly reduces the SE «IA «Boryspil» sensitivity to currency risk on foreign currency loans. The effective debt management policy contributed to reducing the level of debt load, i.e. – the ratio of net debt (interest-bearing bonds and loans reduced by the amount of cash) and EBITDA, as at 30.09.2017, amounted to 0.49х, versus 0.99х based on results of 2016. Highly liquid assets (cash and cash equivalents) available at the at the end of September 2017 covered 60% of the Airport 's current liabilities. The share of equity capital of SE «IA «Boryspil» in the structure of sources of financing of its activities rose to 69%, indicating an increased level of its financial independence.

It should be noted, that the Enterprise’s activity, as well as that of other Ukrainian airports, is sensitive to the state regulatory policy.

In order to conduct the analytical research, the materials provided by SE «IA «Boryspil», have been used, including: financial statements for 2014-2016 and 9 months of 2017, background information on activities of Airport 's, information on the bond issue, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua